M/S. BINORI INFRACON,AHMEDABAD vs. THE DY.CIT, CIRCLE-3(2)(1), AHMEDABAD

This appeal filed by the Assessee is directed against the order of the Office of Commissioner of Income Tax, Appeal, Addl/JCIT(Appeals)–2 Pune [hereinafter referred to as “the Ld.Addl.CIT(A)”], dated 02-02-2024, in relation to the assessment order passed by the Assessing Officer [hereinafter referred to as “ the AO”] under section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as "the Act") for the Assessment Year (AY) 2017-18.

The assessee-firm filed its return of income for the AY 2017-18 on 27-07- 2017 declaring a total income of Rs. 68,76,546/-. The return was processed under section 143(1) of the Act. The case was selected for scrutiny under the CASS, and a notice under section 143(2) of the Act was issued on 10-08-2018, which was duly served on the assessee. Subsequently, the case was transferred to another Assessing Officer (AO), who issued notices under section 142(1) of the Act on various dates. The assessee furnished written submissions and requisite details from time to time, which were examined by the AO.

Aggrieved by the order of Assessing Officer, the assessee filed an appeal before the Ld.Addl.CIT(A), who dismissed the appeal on the ground that the assessee failed to respond properly to five notices issued by the Ld.Addl.CIT(A). The assessee did not provide adequate explanations or supporting documents within the stipulated time frame. Therefore, the assessee is in appeal before us with following ground:

The Learned Lower Authorities has erred in making/confirming the addition made as per the provisions of Section 40(a)(ia) of the Act for the amount of Rs.10,93,445/-. In view of the facts and circumstances of the case as well as law, the addition made is required to be deleted.

The assessee contended that the necessary declarations from the transporters have now been obtained and are available for verification. It was argued that these declarations substantiate the claim that tax was not deductible under section 194C of the Act as the transporters met the criteria laid out in the section.

The Assessee’s Ld.Representative (AR) requested that the matter be referred to the Ld.Addl.CIT(A) for reconsideration in light of the new evidence. The Ld.Departmental Representative did not object to the request of Ld.AR of the assessee.

We have heard the arguments of both the parties and perused the material available on record. Considering that the assessee has now furnished the necessary declarations from the transporters, which were not previously available during the assessment or appellate proceedings, we find it appropriate to refer the matter back to the file of Ld.Addl.CIT(A). Therefore, in the interest of justice, we set aside the order of the Ld.Addl.CIT(A) and restore the matter to his file with a direction to re- adjudicate the issue afresh, after considering the declarations provided by the assessee. The Ld.Addl.CIT(A) shall give the assessee a proper opportunity to present their case and provide any additional evidence as required. The assessee is also directed to co-operate with the Ld.Addl.CIT(A) and furnish all necessary documents promptly. Hence, the ground raised by the assessee is allowed for statistical purposes.

In the result, the appeal filed by the assessee is treated as allowed for statistical purposes. Order pronounced in the Open Court on 14th June, 2024 at Ahmedabad.